Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
. V+ O+ \2 i, H/ k% Cexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
! ^! j+ }& ]2 P( d5 qthese oil producer will go bankrupt or out of the business even if
7 @2 {, d- b' W6 h( t/ r- l# Wcrude prices improves. This implies also to good names such as Shell,
! G6 L2 @- B% Y2 m; sEXXON, BG, BP, Cheveron ....xyz.. oils
2 U2 a: C/ A5 Z( v7 R
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
& w) i3 d7 T  L6 v& Fleast $50.00 per barrel. Today, oil price declined by a record amount.
* o4 g) w4 ]' g2 @7 l$ _

$ K* c/ D7 T9 G3 G$ AThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

; V9 }4 f2 z1 Z
0 b# p$ K7 i  M  _. ^: `# x) F) }1. New oil has been found in Canada, Montana, North & South Dakota and
( @. q: m4 n+ F$ t3 z8 u  v- cin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
) v( ?# s1 i. G7 |! F2 `2 X

2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
. x$ r, Q  }# @+ R; F
' E6 b& A/ T2 C2 q' a  O, k3 o
3. New methods of injecting CO2 and surfactants into oil wells is
3 e; Q) a+ d3 X3 R+ |& nbeing used to double their output.
+ E" G4 k( o' b, e# m

+ \; J4 E  I, m. x" R6 t/ s- n3 _4. Production of bio-fuels is beginning to reach critical mass. Bio
7 r& c* z1 ]' B* k7 p1 yfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
% k$ c" m( v( M" K: c
9 O( z& ]4 M/ W: q+ v/ A6 J
5 T' u$ [' Y7 D* O; f! Z5. Virtually every restaurant in the US and all food processing plants
4 w! G& f! D; i4 _are now selling their used oil to bio-diesel producers. Every pork,
* N  C( l' i) d5 k. s8 L5 mcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
  l+ k5 j" Z9 G9 |- m+ @

6. There are 99 nuclear reactors in various stages of planning and
& Z6 f2 M" o' a# a1 x1 O" xconstruction around the world at this time. Several hundred more are
. ?4 v5 p2 X, x1 l& b8 Mexpected to be built in the future. Much of the energy they produce
will replace oil.


' T3 T! |4 C) t: e( U& _* T1 j7. Every company in any form of transportaion business is replacing
- r1 p! g: t" C  yolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
& m9 v8 G; z' F3 Oare experiencing 20% to 25% better fuel econony with the new
equipment.


, ~% w3 c, p8 z* \# J# jAirlines are flying airplanes with bio-fuel. They are finding the bio-
3 ~. |2 J* N0 T% [/ J6 \fuel is cleaner and performs better than jet fuel.
& }4 U+ t) J" ]6 n9 M+ q1 Z+ R
# @6 B/ ?/ k+ i: _
) S3 T: N+ h; K8. Cities and counties throughout the US are selling the rights to
3 i9 d- j+ x" I8 o7 [9 h) jcapture methane gas from landfills. This is a huge source of gas
! P' j$ g2 f# I4 Pavailable at very little cost or risk. The gas is displacing crude
oil.


8 A' u1 S, h: }9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
! y0 {5 w2 Y1 I: Qoil wells.

/ ]% o6 d# z! ^* H* v1 M; p0 B
# S1 r" o0 p' n# a10. Solar, wind and ocean energy is displacing oil as an energy
; L, B5 b" B; qsource. Three new wind turbines are being erected every day in the US.

' |; r0 A" o; G5 `. _
Each of the above by itself will not make a large difference in the
7 ?( [/ F* @1 Z! w. y4 H* ^% rprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
5 `9 {4 i/ s) f$ O1 kto control oil prices.
1 l- V# E/ j- h8 R/ H
, ~' m" x, q  ]  r3 W& I
With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
. K- t. M0 u: I( tIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

  T4 d+ Z$ i$ ?5 y0 j( b6 }8 T( `
# K7 {7 C, I/ \The above articles are from WSJ .............PUBLISHED ON 9TH JAN
! m1 n4 {" G  A2009 ... FYI-Only